Revamping Vietnam Renewable Energy Landscape

Coro Energy PLC, a prominent South East Asian energy company focusing on natural gas and clean energy, has revealed a significant restructuring within its Vietnamese ventures in preparation for the forthcoming launch of a 50MW rooftop solar project in Vietnam. This restructuring involves a boost in the company’s equity interest in its Vietnamese venture from 85% to 92.5%.

The restructuring, agreed upon on November 23, 2023, entails Invest Gains Viet Nam Company Limited, Coro Energy’s partner in Vietnam, including Vinh Phuc Energy, selling 7.5% of its 15% equity interest in Coro Renewables VN1 Joint Stock Company to Coro Energy. This Vietnamese holding company oversees Coro’s investments in Vietnam, including Coro Renewables Vietnam Company Limited, which operates the existing 3MW rooftop solar project.

The transaction’s value is estimated at around US$290,000 based on the current exchange rate. It comprises an immediate cash payment of US$100,000 and an additional £150,000 in company shares priced at £0.004 per share, representing a 67% premium to the closing middle market price on November 21, 2023. Furthermore, a further contingent consideration of £50,000 in shares at the same price will be issued if Coro achieves 100MW of solar generation in Vietnam. The initial share tranche is expected to be released upon securing adequate shareholder authority at the upcoming Annual General Meeting, tentatively scheduled for June 2024, or an earlier General Meeting.

Michael Carrington, Managing Director of Renewables, expressed satisfaction with this restructuring, paralleling the recent restructuring in the Philippines. He highlighted that this transaction, coinciding with the impending finalization of Vietnam funding arrangements and the initiation of the 50MW rooftop solar project, amplifies Coro’s equity in the Vietnamese business while aligning the partners with Coro’s shareholders.